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Outsourced Virgin line maintenance to go inhouse

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Old 5th Apr 2007, 01:40
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Outsourced Virgin line maintenance to go inhouse

After much speculation, rumour and inuendo, it would appear that Jetcare will be absorbed into Virgin Blue.

Well, if the General Manager's resignation is any indicator that is.

Anyone got any close in information?
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Old 5th Apr 2007, 02:10
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To those in the know at VBA.
Is bringing the maint "inhouse" a good thing if it happens or are the guys at Jetcare happy campers?
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Old 5th Apr 2007, 04:52
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i doubt that Virgrn would be doing the opposite to Qantas
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Old 5th Apr 2007, 05:01
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VB Engineer,does that mean a decision on SMP has been made?
Also, how is it going up top with this new 48hr daily circus?
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Old 5th Apr 2007, 05:33
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Makes sense to me...surely it will be more economical to run one maintenance section rather than Virgintech and Jetcare in parallel. The real question is if the operations are merged, will the new entity continue doing the metro, skyairworld, ozjet, et al work or just focus on the expanding Virgin Fleet?
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Old 7th Apr 2007, 09:45
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Why would Virgin consider absorbing Jetcare? It is nothing more than manpower provision to VB. They would be better off to expand VT for line maintenance and allow the likes of Jetcare to bid for other maintenance.

The big mover will be AAES out of Melbourne with John Holland backing

The GM's resignation serves only as a loss to his new employer. With a failed BDIS and introduction of AWA's as his only achievements, Jetcare won't notice he is gone
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Old 7th Apr 2007, 18:48
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Hosser,

From what I hear Virgin are just waiting on Toll acceptance of their offer for Jet Care. Not sure what will happen with the "non Virgin" work.

Only a matter of time before an aircraft goes out with a short daily, can't understand their logic in this one, easier for us just to do them all.

You in JC or VT?
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Old 8th Apr 2007, 03:46
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VBA Engineer, I think the logic for the Daily extension would be financial. If VB are paying for only the work they call up the savings would be significant.

Lets say conservatively it's 2 man hours for a Daily x $100 per manhour x 50 aircraft x 365 days a year = $3.6 million

You divide that by 2 with a 48 hour daily and you have a decent saving. You could even employ someone to manage the 48 hours and save. Scary thing for us might be what Jetcare and VT would do about the revenue reduction (if Jetcare ever get a reality check away from the cost + 10% golden goose)?

There has been speculation for ages that VB only want to do the line maintenance in house during operating times with skeleton or Jetstar like numbers, and let the MRO's fight for the overnight stuff. Maybe no longer true, but if they buy Jetcare it might be with something like that in mind.
We are safe until they get their crap together with pitcrew receipt/dispatch (which might be never) but beyond that.... I smell permanent nightshift

Still don't see what VB gains from buying Jetcare other than the labour, they already own all the tooling and equipment
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Old 8th Apr 2007, 21:08
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I guess they get an automatic 10% reduction in cost. That's without any further efficiency from having a single management structure etc.
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Old 7th Aug 2007, 11:41
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Did anyone get a chocolate frog in their showbag today?
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